Logitech 2013 Annual Report Download - page 76

(4) Represents RSUs that vest at a rate of one-third per year over three years, on each yearly anniversary of the
grant date.
(5) These amounts do not represent the actual economic value realized by the named executive officer. Amounts
in this column represent the grant date fair value of Options, PPOs, PSOs and RSUs calculated in accordance
with Accounting Standards Codification (ASC) 718 but does not include a reduction for forfeitures. For
Options, that number is equal to the fair value of the options on the grant date using the Black-Scholes-Merton
option-pricing model. For PPOs and PSOs that number is calculated by multiplying the value determined
using the Monte Carlo method by the target number of units awarded. For RSUs, that number is equal to the
closing price of Logitech shares on the grant date. The key assumptions for the valuations are presented in
Note 4 to the Consolidated Financial Statements included in Logitech’s Annual Report to Shareholders and
Annual Report on Form 10-K for fiscal year 2013 filed with the SEC on May 30, 2013.
NARRATIVE DISCLOSURE TO SUMMARY COMPENSATION TABLE AND GRANTS OF
PLAN-BASED AWARDS TABLE
Employment Agreements and Offer Letters
We have entered into employment agreements or offer letters with each of our named executive officers.
The employment agreements and offer letters generally provide that the compensation of the named executive
officer is subject to the sole discretion of the Compensation Committee or the Board of Directors. Other than
Mr. Werner Heid’s compensation in connection with his resignation and Mr. Darrell’s compensation as a new hire,
the compensation earned by the named executive officers in fiscal year 2013 was not the result of any terms of their
employment agreements or offer letters.
Performance-Based Vesting Conditions
Please refer to “Compensation Disclosure and Analysis—Elements of Compensation—Performance-based
cash incentive awards” for a discussion of the performance measures applicable to the Bonus Plan during fiscal
year 2013. In addition, please refer to “Compensation Disclosure and Analysis—Elements of Compensation—
Long-term equity incentive awards” for a discussion of performance measures under the PPOs and PSOs granted
to named executive officers during fiscal year 2013.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
The following table provides information regarding outstanding equity awards for each of our named executive
officers as of March 31, 2013. This table includes unexercised and unvested stock options, unexercised and unvested
performance stock options, unvested PSUs, and unvested RSUs.
Unless otherwise specified, options and RSUs vest at a rate of 25% per year on each of the first four
anniversaries of the grant date. Market value for stock options, including PPOs and PSOs, is calculated by taking
the difference between the closing price of Logitech shares on NASDAQ on the last trading day of the fiscal year
($6.97 on March 31, 2013) and the option exercise price, and multiplying it by the number of outstanding options.
Market value for stock awards (RSUs and PSUs) is determined by multiplying the number of shares by the closing
price of Logitech shares on NASDAQ on the last trading day of the fiscal year.
Certain of the options as granted to Mr. De Luca have exercise prices denominated in Swiss Francs. The U.S.
Dollar exercise prices shown in the table below for such options are presented in the table based on a Swiss Franc
to U.S. Dollar exchange rate on March 31, 2013 of 1 to 1.05.
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